Donna works in BC as a security analyst. Her salary for 2017 was $130,000. In 2014, she bought 1500 shares of a large public company at $10/share on which she received dividends of $0.44 per share. At the end of 2017, she sold the 1500 shares at $11.50.

1: How much tax will Donna pay in 2017?

2: What is Donnas after-tax proceeds on the sale of the shares?

3: What is the after-tax rate of return on the company investment? (annualized)

2017 Marginal Tax Rates 2017 Taxable Canadian Dividends Other Capital IncomeIncome Gains Eligible Non Eligible first $38,898 20.06% 10.03% -6.84% 8.27% over $38,898 up to $45,916 22.70% 1 1 .35% -3.20% 1 1 .36% over $45,916 up to $77,797 28.20% 14.10% 4.39% 17.79% over $77,797 up to $89,320 31.00% 15.50% 8.25% 21.07% over $89,320 up to $91,831 32.79% 16.40% 10.72% 23.16% over $91,831 up to $108,460 38.29% 19.15% 18.31% 29.60% over $108,460 up 40.70% 20.35% 21.64% 32.42% to $142,353 over $142,353 up 43.70% 21.85% 25.78% 35.93% to $202,800 over $202,800 47.70% 23.85% 31.30% 40.61% 2017 Marginal Tax Rates 2017 Taxable Canadian Dividends Other Capital IncomeIncome Gains Eligible Non Eligible first $38,898 20.06% 10.03% -6.84% 8.27% over $38,898 up to $45,916 22.70% 1 1 .35% -3.20% 1 1 .36% over $45,916 up to $77,797 28.20% 14.10% 4.39% 17.79% over $77,797 up to $89,320 31.00% 15.50% 8.25% 21.07% over $89,320 up to $91,831 32.79% 16.40% 10.72% 23.16% over $91,831 up to $108,460 38.29% 19.15% 18.31% 29.60% over $108,460 up 40.70% 20.35% 21.64% 32.42% to $142,353 over $142,353 up 43.70% 21.85% 25.78% 35.93% to $202,800 over $202,800 47.70% 23.85% 31.30% 40.61%